By Abena Rockcliffe
The effects of the Panama deal that went sour in 2018 were far reaching. At least five rice mills were forced to shut down. Six years later, some rice millers have signalled intent to restore operations following the disbursement of $1.5B dollars.
Millers gathered this morning in the boardroom of the Ministry of Agriculture where Minister Zulfikar Mustapha distributed the cheques to them individually.
Before handing over the cheques, Mustapha was sure to recall the series of events that led to the eventual payment by Panama. He went as far back as when the agreement was signed in 2014, affirming that it was the People’s Progressive Party/ Civic (PPP/C) government that secured the market for farmers.
Mustapha recalled that operations ran fairly well until 2018 when then APNU+AFC government, through the Guyana Rice Development Board (GRDB), collected the paddy from millers and shipped the supply to Panama on credit. Since then, the debt accrued much interest.
Mustapha criticized the APNU+AFC government’s handling of the matter and pointed out that the former regime often referred to the rice industry as “private business.” Mustapha said that APNU+AFC essentially ignored the fact that millers and farmers were left to face the brunt of hardships due to the collapse of the deal and outstanding payments.
Mustapha said the PPP/C government worked tirelessly and was prepared to exhaust all measures to secure the payment. He recalled that the government started by trying to resolve the matter bilaterally. When those talks failed, the government decided to go the legal route and filed arbitration with the International Chamber of Commerce Arbitration Center in Paris, France. Eventually, President Irfaan Ali was engaged by his Panamanian counterpart who vowed to pay the principal sum once Guyana agreed to withdraw its case. An agreement was then signed for the payment of the premium sum and legal fees.
Mustapha said that the securing of payments for millers is yet another promise fulfilled by the PPP/C government and has to be seen in light of all that is happening in the rice industry where production targets are being surpassed.
The Minister said that the government is committed to partnering with those in the rice industry as “we do not see rice as private.” He noted that since 2020, over $3.6B has been invested in the rice industry to bring relief to farmers.
Mustapha also boasted that the GRDB has been successful in developing higher yielding varieties that can attract preferential prices.
Mustapha did not miss the opportunity to remind millers that the government has been investing heavily in improving drainage and irrigation across the country. In this regard, he mentioned the impending construction of two “Hope-like” canals that will see the government doling out some $6B. The ministry said that these structures will go a long way in ensuring flood mitigation. Mustapha said that these and other measures will ensure the success of the rice industry.
Millers who owed farmers for paddy sent to Panama were required to pay. In fact, Mustapha said that his Ministry asked GRDB to deduct the amount owed after consultation with the millers and farmers.
At least two of the millers who were forced to shut shop in 2018 have signalled their intention to restore their business. Preamwati Baliram who operated D Sukhlall Industry told Guyana Standard that she will use the money she received this morning to get the mills going again. She said that she continued farming on a small scale over the years but post-2018, she was forced to take her harvest to other millers. However, she never sold her equipment, so she does not have to start again from scratch.
Dereck Ramroop, another miller who closed his operations in 2018, said that he now has a willingness to return to the industry. He lost hope under the previous government but will now look to see how he can start things up again. He did not give as firm a commitment as Baliram but said, “I will see how things go.”
